HVAC Maintenance Contracts — Money Down the Drain?
I didn’t even think about purchasing an HVAC Contract until one of our team members at Brotherly Love Real Estate explained the benefits. I was amazed to discover that I had been living in my home without a contract.
You may have heard horror stories about HVAC maintenance contracts costing more than the HVAC technician’s services, and wonder whether this regular HVAC maintenance will prevent more costly issues in the future.
Maintenance is essential for HVAC (Heating, Ventilation, and Air Conditioning) systems to prevent normal wear and tear, replace broken parts, and extend the system’s life. In addition, an HVAC service contract can help protect you financially.
Purchasing a fully customized HVAC maintenance plan could be one of the financially responsible decisions you make for your home’s HVAC systems. But before you sign your HVAC maintenance agreement, here are some of the most important details you need to know about these contracts and the law governing this matter.
Types of HVAC Maintenance Contracts
The type of HVAC maintenance contract you get depends on your chosen company, your needs, and your HVAC system’s complexity.
Full Coverage and Emergency Services Contracts
This type of contract may be in your best interest if your HVAC system is old. Older HVAC units can collect bacteria and spread them throughout your home over time. Keeping your systems updated can avoid these issues and keep you healthy.
My previous place had a historic HVAC. I soon realized they needed to be repaired. Having a full-coverage contract made it easier for my wife and me.
When signing the HVAC service contract, check whether you will get preferential service on non-scheduled repair calls or as insurance for costly repairs. According to common practice, a licensed technician will be responsible for maintaining, inspecting, and servicing your heating and air conditioning system during an emergency and on a pre-determined basis. You can expect to pay a flat fee annually.
Labor Only HVAC Contracts
This type of maintenance contract covers labor costs but not the parts or services. Read the document before signing to know what you agree to and which expenses will be considered additional.
Jon learned this the hard way. The technician showed up to fix the HVAC at his home in Philly, but what Jon hadn’t realized was that the parts would cost extra since they weren’t part of the contract he had signed.
His only words to me were, “Alex, you gotta read the fine print”.
“A great piece of advice would be to establish a price range for equipment parts in the contract, or some discount from the HVAC company for such repair parts.”
Unlike full-coverage contracts, it does not cover any costs associated with installing, servicing, and purchasing the necessary parts. Instead, its coverage is focused on HVAC repairs, replacement, and maintenance.
Preventative Contracts
Preventive maintenance HVAC contracts are designed to address and deter any issues your HVAC system may experience in the future. You receive yearly or seasonal HVAC system evaluations and expect to pay separate but discounted charges for any repairs or maintenance services offered in an inspection contract.
What To Include In HVAC Contract
When you have HVAC maintenance contract options, ensure that the one you go with meets your needs. Consider the scope of services you will receive, within which timespan, and how the payment schedule works.
Timeframe: Your HVAC maintenance contract should include strict conditions for the technicians’ response time after you have made a service request.
Services: The only way to ensure your HVAC maintenance contract holds up in a dispute is if it contains all services the technician must provide.
If you have a full-service agreement with an HVAC maintenance provider, they should be responsible for covering a variety of services, including, but not limited to:
- Emergency services
- HVAC system testing
- Inspecting and cleaning ducts
- Replacing broken or defective parts
Payments: For the most part, HVAC maintenance contracts are prepaid. However, if you are not comfortable with this payment structure, you can opt for a monthly payment plan to cover the costs associated with the contract.
How To Get the Best Deal With HVAC Contracts
Ensure that you get the proper legal contract in three steps.
Ask Questions
Before you agree to purchase an HVAC maintenance service contract, do not hesitate to ask questions. It would help if you asked the following:
- What types of repairs does your HVAC system need?
- Is your HVAC unit still under a manufacturer’s warranty?
- What is the average cost to repair this specific HVAC unit?
- How long will you need to wait to get emergency treatment?
Check the Company’s Reputation
Before signing on with any HVAC company, it is essential to research and check its reputation. Researching your HVAC system can save you from potential frustrations and headaches in the future.
Get A Customized Contract
The best way to ensure your HVAC maintenance is to get a tailored contract.
The best way to get the legal document without the attorney’s presence is to use the HVAC contract template. Platforms such as Lawrina offer complete customization for each contract.
Bottomline
HVAC is an integral part of any property. As cash home buyers, we are aware that properties may sometimes lack a fully functioning HVAC system. But that’s the beauty of buying homes as-is. You get to work with a new template each time.
